Ethical Issues in HRM

Ethical Issues in HRM

s h a r i n g     b y  Bhuwan R Chataut

[St. Xavier’s College, Maitighar]

‘All HR practices have an ethical foundation. HR deals with the practical consequences of human behaviour’. – Johnson(2003)

Concepts of Ethics in HR

HR activities and practices are mot free from ethics. They are the expression and application of standards of moral conducts. They govern the HR practices so that the interests of people get protected.

Ethics and Ethical Behavior

Ethics - Ethics is a key branch of philosophy, concerned with analysing what is right or wrong in people’s behaviour or conduct. Ethics and morality are terms that are often used interchangeably in discussions of good and evil.

The term ‘ethics’ is usually applied to persons (ethics comes from the Greek ethos, meaning character) – and ‘morality’ to acts and behaviour (moral comes from the Latin moralis, meaning customs or manners).

Ethical Behavior - Conforming to moral standards or conforming to standards of conduct of profession or group

Ethics guide the whole organization including HR about acceptable of what is morally right or wrong, and aim to enforce the discipline of conformance to those principles.

Four types of moral theories in ethical practices that guide the HR activities:

ü  The utilitarian theory (based on benefits and costs)

ü  The theory of rights and duties

ü  The theory of justice and fairness

ü  The theory of care

Factors Influencing HRM Ethics

•       Ethical standards of HR Managers

•       Action of peers and top managers

•       Organization culture

•       Organizational environment

•       Societal forces

Ethical Behavior and Organizational Culture

•       Organizational Culture

–      The shared values and beliefs in an organization

–      Common forms of unethical conduct:

•       Lying to supervisors

•       Employee drug use or alcohol abuse

•       Falsification of records

•       Fostering Ethical Behavior

–      A written code of ethics and standards of conduct

–      Training on ethical behavior for all employees

–      A means for employees to obtain ethical advice

–      Confidential reporting systems for ethical misconduct

The unethical practice of HRM itself as also hit public attention:

•       Off-shoring and exploiting ‘cheap’ labour markets;

•       Using child labour;

•       Reneging on company pension agreements;

•       Longer working hours;

•       Increasing work stress;

•       The use of disputed and dubious practices in hiring and firing of personnel.

It has been shown that just as consumers’ perception of the ethics of a company can affect sales, so the views of its investors will affect its share price. Similarly, it has been suggested that poor standards of conduct emanating from the top management affect employee motivation and commitment to organisational goals (Schramm, 2004).

Key Ethical Issues in HRM

•       Employee Privacy (use of technology; even spying at rest life)

•       Equity and Fair Treatment (ADUM -  Equal employment opportunity legislation, Employee safety and health, Employee pay and benefits, Job Security)

•       CSR ( all stakeholders)

•       Other Ethical issues (Information sharing - no proper communication; Behavior with incompetent due to lack of technology or/and old employees; behavior with employee only good at workplace, not at rest life; smoking at non-smoking zone; employee with lot family problem but capable at workplace… so on; lack of ethical training)

Examples of Ethical Misconduct in HR Activities

•       Ensuring employee’s physical privacy

•       Base the search/seizure policy on legitimate employer interests

•       Provide adequate notice to employees before instituting the program

•       Instruct those conducting the search not to touch any employee (or to limit touching)

•       Conduct search away from other employees and on company time

•       Don’t observe in areas in which there is a reasonable expectation of privacy

•       Ask if employee would like attorney present during investigative interview

ü  Does an employer have the right to search an employee’s computer files or review the employee’s email or voice mail?

ü  Can companies keep information about the employee in separate files (the employee’s file and the supervisor’s file) and allow the employee access to only one?

ü  Can employers use private investigation agencies to collect information about their employees?

ü  Can an employer give employment information about an individual to a potential creditor or to a landlord?

Firms with High Ethical Standards (Importance of Ethics)

–      Are more likely to reach strategic goals

–      Are viewed more positively by stakeholders

–      Are better able to attract and retain human resources

–       Ethics ensures business sustainability

HR’s Role in Organizational Ethics

Human resource managers must satisfy three basic standards for their practices to be considered ethical:

–      HRM practices must result in the greatest good for the largest number of people

–      Employment practices must respect basic human rights of privacy, due process, consent, and free speech

–      Managers must treat employees equitably and fairly

HR management plays a key role as the “keeper and voice” of organizational ethics.

HR can play three roles in the area of workplace ethics:

1.     Investigation role:  investigate complaints against violation of employee’s privacy, sexual harassment etc.

2.     Monitoring role: observe the actions of people to ensure that employees are treated fairly, legally and morally.

3.     Advocacy role: advocacy for the company’s ethical and legal actions.

  

 Any queries?

Thank you !

(References --- Various HRM Books)